Operations Management

It is now 2025, and you have recently left Kodiak after helping the company launch their driverless truck fleet. Kodiak now has driverless trucks delivering freight across Texas, with most of the freight volume between DFW and Houston.

You see a great opportunity to create a delivery company using autonomous vans or small trucks for last-mile delivery in the DFW area. But you have not decided what type of industry to support or products to deliver. You do know that you need to create a business case to show how this is a viable and profitable operation to line up investors. You decided to sketch out a plan that discusses these decisions and areas:

Industry/products – delivery vans to support retail stores? Restaurants? Deliver food to residential homes or apartments?

The vehicles – what type would work best for the industry and/or products? Small delivery vans? Box trucks? Small vehicles that can carry a few packages/items?

Profitability – what is the cost structure? Would a contract with a company work best (set number of shipments and cost per shipment)? Or a single fee (rate) per delivery? What are the expenses to consider, such as fuel? Would electric vehicles work best vs. gasoline or diesel fuel?

Risks – what are the risks to having this a viable operation?

Resources – what resources do you need to make this happen? What regulations or policies need to change? Who will provide the vehicles?

Location – what area of DFW makes the most sense to start this operation? Is there a city that uses autonomous vehicles or is open to a start-up like yours